Significant growth projected for mid to large-sized family offices in India: Sundaram Alternate Assets
CAGR growth for the Indian family offices and a 5% increase in the alternative investments over the next 3 years has been predicted by Sundaram Finance Group-held Sundaram Alternate Assets.
The report also noted that Indian family offices are increasingly embracing alternative investments, with a projected 5% increase in allocations to 18% over the next three years, which aligns with a global trend, where family offices allocate more than 50% of their assets to alternatives.
The shift reflects a strategic move toward diversification, niche investment strategies, and active participation in India’s growth story, particularly through startups and innovative ideas.
Alternative Investment Funds (AIFs) are gaining traction among Indian family offices as a preferred tool for accessing private markets and startups. AIFs offer a diversified portfolio that mitigates risks compared to single investments, according to Sundaram Alternate’s report.
The expertise provided by AIF managers in selecting opportunities across the risk-return spectrum is driving this trend, with many family offices opting for co-investments with existing funds to execute high-conviction strategies with minimal operational challenges.
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“Family offices in India are at a pivotal juncture where the integration of traditional values with modern investment strategies is driving significant growth. Our report underscores the importance of governance, diversification, and
